Are you wondering how to buy IKEA stock? If you’ve been a college student, you could not have missed IKEA, a popular furniture store. IKEA is a well-known multinational conglomerate that designs and sells ready-to-assemble furniture. Additionally, it also sells kitchen appliances and home accessories, and home services. IKEA was founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, and since 2008, IKEA has been the world’s largest furniture retailer.
What to do if you want to invest in IKEA stock?
Despite its outstanding growth, IKEA remains a private company, which means it is held under private ownership. Private companies may issue stock and have shareholders, but their shares are not traded on public exchanges. If IKEA stock has to be traded on a stock exchange, IKEA should issue its stock through an Initial Public Offering (IPO). If you’re thinking of investing in IKEA stock, you might have to wait some more as IKEA stock is not yet listed on the stock exchange.
Private vs. Public Companies
People usually think if it is a private company, the company would be small and unknown. However, big-name companies such as IKEA and Bloomberg are privately held. Let’s look at what it means to be privately and publicly owned.
What does it mean to be privately held?
It means that the company is owned by its founders, management, or a group of private investors. The main advantage of private companies is that the company management is not obligated to answer to shareholders and doesn’t have to disclose financial information to anyone. The main disadvantage of private companies is that private companies cannot rely on funding from the public capital markets and must rely on private financing. Privately held companies can borrow money from banks or venture capitalists or rely on profits to fund growth, but they cannot tap into the public capital markets.
What does it mean to be publicly held?
On the other hand, a public company means that the company has sold all or a portion of itself to the public through an initial public offering (IPO), which means shareholders can have a part of its assets and profits. The main advantage public companies have is their ability to raise funding by selling stock (equity) or bonds (debt) for expansion or other projects.
Top 3 IKEA Competitors
Amazon is an American multinational technology company based in Seattle, Washington. Amazon’s revenue comes from different streams such as e-commerce, cloud computing, digital streaming, and artificial intelligence. Amazon.com, one of the world’s most valuable brands, was started by Jeff Bezos as an online marketplace for books but expanded to sell electronics, software, video games, furniture, etc. It has disrupted well-established industries through technological innovation and mass scale and has become the world’s largest online marketplace. Amazon distributes furniture through Amazon Home and offers a wide range of furniture in various categories of furniture such as dining room, outdoor, storage furniture, etc.
Walmart Inc. is an American multinational retail corporation based in Bentonville, Arkansas. It was founded by Sam Walton in 1962 and was incorporated in 1969. Walmart, Inc. engages in the retail and wholesale business, offering an assortment of merchandise and services at everyday low prices. Walmart has emerged as one of the world’s biggest retailers and among the world’s largest corporations. It does not exclusively sell furniture but has a diversified product line. Walmart also has a great selection of furniture in different categories such as bedroom furniture, office furniture, living room furniture, small space furniture, etc.
Wayfair, which is headquartered in Boston, Massachusetts, is a fast-growing American e-commerce company. It was founded in 2002 by Niraj Shah and Steve Conine. It was previously referred to as CSN stores until 2011 and Wayfair thereafter. Wayfair deals with home goods and furniture. The company has made a name for itself because of its variety of products, excellent customer service, user-friendly website, and the fact that it offers free shipping, even for some of its larger merchandise.
Investing in IKEA’s competitor stocks
To make sure that you don’t lose money investing, you need to do your due diligence before you invest in IKEA’s competitor stocks. Here are the steps to follow.
1. Understand how the stock market works
If you want to invest in IKEA’s competitor stocks, you should understand how the stock market works. You should not panic when stocks go down or buy in a frenzy when stocks trade high.
2. Research IKEA’s competitor stocks
As an investor, it is a good idea to buy stocks in companies that you’re already familiar with and know well. If you are already using IKEA’s competitor products and trust the brand, you can buy IKEA’s competitor shares. Before you buy IKEA’s competitor shares, you should take steps to research the stock and its fundamentals.
You should look at where the company gets its revenue from, how its growth looks like, and what its plans are. Most of this information will be available in the company’s annual report in the annual letter to shareholders.
This letter will share the essential updates in the business. The company’s SEC filings, conference call transcripts, quarterly earnings updates, and recent news about the company are good sources of information to analyze the company.
The more analysis you do and the more information you have, you will make more intelligent decisions about investing in IKEA’s competitor stock.
3. Examine broader market conditions
You should also look at broader market conditions before you buy IKEA’s competitor stock. If it is a bull market, the price will go up, and it would make sense to buy the stock immediately. If it is a bear market, the price will go down, and it might be better to wait to buy at a lower price.
How to buy IKEA’s competitor stock?
Buying shares online is a simple process, even for new investors. If you’re thinking of buying IKEA’s competitor stock, you must decide whether you want to buy the stock for the short term or the long term. If you’re going to invest in the short term, you should perform a technical analysis of the stock.
If you want to hold IKEA’s competitor stock for the longer term, you should perform a fundamental analysis of the company. You should also keep yourself updated with news and with developments of IKEA’s competitors. Here are the steps you need to follow.
1. Select a broker
To buy IKEA’s competitor stocks online, you will need to use an online brokerage platform. Our broker reviews can help you select from the best brokers for trading IKEA’s competitor stocks. In general, you should look at the following parameters before selecting a stockbroker.
Stocks available for trading: The first criteria for selecting the broker is that you should be able to use the broker to trade IKEA’s competitor stock.
Commissions charged: Some brokers charge a higher commission, so if you want to maximize your profits, you would want to choose a broker with lower commissions.
Account fees: You should also watch out for other fees such as annual fees, inactivity fees, trading platform subscription fees, and fees for research or data. Brokers will also charge a fee for transferring cash or investments or for closing your account. You can avoid many of the fees by choosing a broker that doesn’t charge fees or by opting out of services that cost extra.
Payment methods: Some brokers are more flexible in their payment methods than others. If you want flexibility in payments, this should be one of your criteria.
Track record: You should choose a broker based on their track record. The broker that you choose should have a track record of reliability, and they should have been around for a while and have good reviews online.
Our broker reviews can help you select from the best brokers for stock trading. Here are the best stock brokers of 2021.
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2. Open a brokerage account
This is the account in which your shares will be stored. Opening a brokerage account has become very simple. The steps vary from platform to platform, but you should be good to create your account once you provide your details and some form of identification. Again, the time taken to open an account varies between platforms.
3. Fund your brokerage account
The next step is to log in to your account and deposit money in your brokerage account. Most brokers accept bank and debit card transfers, and some accept transfers through other methods such as PayPal.
4. Decide how many shares to buy
If you’re a new investor, you could start small with a small amount and gradually increase your investment as you get more experienced in the stock market. You can also think about investing in fractional shares, which certain brokers offer. Buying a fractional share means you are purchasing a portion of IKEA’s competitor stock instead of the whole stock. If IKEA’s competitor stocks are too pricey, you can opt to buy a fractional share in IKEA’s competitors.
5. Choose your stock order type
All you have to do now is search for the IKEA’s competitor stock’s ticker, specify the number of shares, choose your order type and click on buy. Once you place your order for IKEA’s competitor shares, your broker will execute the order, and the IKEA’s competitor shares will be listed in your account.
There are different order types you can place. Let’s look at the most commonly used ones, the market order and the limit order.
The market order instructs your broker to place an order at the prevailing market price for IKEA’s competitor. There are no price parameter restrictions on this order. You should use this order type for stocks that don’t experience wide price swings, generally larger company stocks. Stock prices can vary between seconds.
If a small price fluctuation does not matter to you, you should place a market order. If you place a market order trade “after hours”, when the markets have closed for the day, your trade will get executed the next day at the prevailing market price.
The limit order instructs your broker to place an order when the IKEA’s competitor stock reaches a specific price point. It gives you control over the price at which your trade is executed.
For example, if the IKEA’s competitor stock is trading at $200, but you value IKEA’s competitor at $180, the limit order tells your broker to wait till the IKEA’s competitor stock price reaches $180. Limit orders are suitable for smaller company stocks that experience wide price swings.
6. Review your position in IKEA’s competitor
Once you have purchased IKEA’s competitor stock, you should monitor the IKEA’s competitor stock periodically according to your investment strategy. You should follow the company’s quarterly and annual results and the news and developments in IKEA’s competitor.
Apart from Amazon, Walmart and Target, there are other companies such as Ashley Furniture, Target, etc., that are competitors to IKEA. However, IKEA is tremendously popular because of its high quality, affordable furniture that appeals to college students, young families, and others on a limited budget. No doubt, if IKEA decides to IPO, the IKEA stock will be a great investment. Until then, you can invest in any competitors to IKEA.
Investing always comes with certain risks and IKEA’s competitor stocks are no different. You can reduce risks by diversifying your portfolio and by avoiding scams by choosing a reliable broker.
To recap, you can invest in IKEA’s competitor stocks by selecting a broker, opening a brokerage account, depositing money in your brokerage account, placing an order, and reviewing your position periodically.